6 Reasons Your Agent Wants You Pre-Approved Before Showing You Homes

Ever had an agent deny to show you a home because you weren’t pre-approved for a mortgage? It’s not because they’re mean, or they don’t value your business… it’s actually because they’re looking out for your best interests.

Let’s face it, shopping for a home before getting pre-approved for a mortgage is like walking into a grocery store without a wallet. You may have the desire to buy, but you lack the ability. Let’s cover some basics…

What is a mortgage pre-approval?

In a nutshell, a mortgage pre-approval is written assurance from a lender or broker that you’re able to borrow money to purchase a home up to a certain amount. It’s based on the income, employment and asset documentation you supply at the time of application, in conjunction with your credit history. So let’s look at the 6 reasons you should get pre-approved.

1. It carries more weight than a “pre-qualification”.

A pre-approval differs from a pre-qualification. With the former, the lender has actually checked your credit and verified your documentation to approve a specific loan amount (usually for a particular time period such as 30, 60 or 90 days). A pre-qualification can be useful as an estimate of how much you can afford to spend on your home, but it’s a less accurate indicator of your ability to purchase. A pre-approval always carries more weight.

2. You’ll know how much house you can afford.

Getting pre-approved before you begin house hunting allows you to know how much house you can realistically afford. Knowing this narrows down the options and makes the selection process more efficient. Not to mention, it protects you from the unpleasant surprise of realizing the home you fell in love with doesn’t fit your budget.

3. It adds clout to your offer.

In many markets, homes attract more than one offer. If the sellers are weighing one offer against another, they may lean towards the one accompanied by a pre-approval letter. That’s because pre-approvals instill confidence that the buyer is financially capable of purchasing their home.

4. It could increase your negotiating power.

In addition to strengthening your offer when compared to buyers who haven’t taken this step, getting pre-approved may give you the upper-hand when negotiating the price. If the homeowner is eager to sell, they may be more willing to accept a lower offer from someone they’ve been assured is financially capable of purchasing their home.

5. It saves time.

Obtaining a mortgage is a lengthy process. Getting pre-approved ahead of time shortens the time between contract to close — this way you’re ready to proceed with finalizing the mortgage once you’ve found the home you want to purchase.

6. Without it, most agents won’t work with you.

Makes sense, too. Right? Think about it: when you hire an agent, he/she will invest countless hours showing you homes over the course of your house hunt. If you were in their shoes, wouldn’t you want assurance that your hard work would lead to a favorable outcome for both you and your client?

If you think this is just another Real Estate agent's bio, I challenge you to read this to the end. You'll see how working with me is more than selling or buying property. My name is Carl Borey. Welcome and thank you for reading. My journey in the Real Estate industry began in the early 90s as a Mortgage Broker in Florida. For more than 12 years I have been a full-time resident of Palm Springs, and I have seen many changes in this market. Several years ago, I decided to make Real Estate my career again, and I felt I had a responsibility to bring something different to the industry. The Coachella Valley can be a complex and vibrant landscape with opportunities to grow and create change in many areas – including housing. I have believed from day one that buying and selling property is much more than just contracts and keys. This same principle still guides my work today. This is about people's lives. These lives extend far beyond our own front yards. Most of us want to be involved in our communities. Many of us find ways to support our neighbors, whether they are across the street or across town, through charitable donations of time and money. Our local Food Banks, animal rescue organizations, churches, community groups and service clubs do so much with so little. Let's work together to support them. Just as I do in my personal life, I pledge to give back through my professional life. With every transaction that we complete together, I will ask you to select an approved non-profit charity of your choice. I will donate $1,000 from my personal commission to that charity from both of us, in gratitude for you allowing me to join you on your journey. This donation allows your experience with me to inspire a legacy of giving. That is how we can make a difference and build a better community together.

Whether you are a first-time home buyer, a luxury home seller or an investor, you will have a skilled, trusted advisor on your side. My commitment to you, and to my community, is that I will always deliver an experience with integrity, passion and a personalized approach.

From curbside to contract and beyond the sold sign, I am grateful to be here for you.